Julia's Motorcycles Inc. produces one model of motorcycle, called the Lightning. The Lightning has an MSRP of $2,500. The cost to produce unit is $800. Their fixed costs are $2,000,000. You are responsible for deciding whether you should sell the Lightning via a retailer named Ru Motors Inc. Rugged typically discounts its products 18% from the MSI They are asking for 55% distributor margin. And what would Julia's break even revenue be? (show your work)

Julia's Motorcycles Inc. produces one model of motorcycle, called the Lightning. The Lightning has an MSRP of $2,500. The cost to produce unit is $800. Their fixed costs are $2,000,000. You are responsible for deciding whether you should sell the Lightning via a retailer named Ru Motors Inc. Rugged typically discounts its products 18% from the MSI They are asking for 55% distributor margin. And what would Julia's break even revenue be? (show your work)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Trask Inc. and Vice Inc. are two small clothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to meet production, Trask needs the machine for 1,000 hours and Vice needs it for 750 hours. If each company rents the machine on its own, the fee will be $90 per hour of usage. If they rent the machine together, the fee will decrease to $85 per hour of usage. Read the requirements Requirement 1, Calculate Trask's and Vice's respective share of fees under the stand-alone cost-allocation method. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar) Incremental Trask primary user Vice primary user Trask Stand-alone Requirement 2. Calculate Trask's and Vice's respective share of fees using the incremental cost-allocation method assuming (a) Trask ranked as the primary party and (b) Vice ranked as the primary party. (Do not round intermediary calculations. Only round the amount you input…
Hansaben
Henry Sweet Company currently makes 6-inch candy sticks that it sells for $0.20 each. Henry can make 12-inch candy sticks out of two 6-inch candy sticks by melting them together, which costs an additional $0.03 per 12-inch stick. Henry can sell the 12-inch sticks for $0.45. Henry has enough capacity to make 10,000 6-inch candy sticks per month, and enough demand to sell all of the candy sticks it can manufacture, whether 6- inch or 12-inch. Should Henry sell 6-inch or 12-inch candy sticks, and how much additional profit will its decision bring in per month? Multiple Choice O O Sell 6-inch sticks, additional $100 Sell 6-inch sticks, additional $250 Sell 12-inch sticks, additional $100 Sell 12-inch sticks, additional $250
Roe manufactures and sells cloth facial masks. Per unit direct material and direct labor costs are $1 and $2 respectively. Other than these costs, Roe pays $1,000 for rent, $1,500 for the floor manager's salary, and recognizes $300 depreciation on the equipment every month. Roe sells each mask at $10. If Roe sells 500 masks, what would be Roe's total revenue and total costs? Group of answer choices Total revenue: 5,000; Total costs: 1,500 Total revenue: 5,000; Total costs: 4,300 Total revenue: 3,500; Total costs: 1,500 Total revenue: 3,500; Total costs: 2,800
Radar Company sells bikes for $510 each. The company currently sells 4,200 bikes per year and could make as many as 4,580 bikes per year. The bikes cost $255 each to make: $180 in variable costs per bike and $75 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 380 bikes for $490 each. Incremental fixed costs to make this order are $46,000. No other costs will change if this order is accepted. Compute Radar's additional income (ignore taxes) if it accepts this order. Incremental Amount per Unit Incremental Incremental Income from New Business Fixed Costs Contribution margin Incremental income (loss) from new business The company should
Tim's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: product type high quality medium quality price invoice cost 840 620 sales commission sales price 1850 920 100 40 Three-quarters of the shop's sales are medium-quality bikes. The shop's annual fixed expenses are $270,400. (In the following requirements, ignore income taxes.) a. What is the shop's break-even sales volume in dollars? Assume a constant sales mix. b. How many bicycles of each type must be sold to earn a target net income of $126,750? Assume a constant sales mix.
Julia's Motorcycles Inc. produces one model of motorcycle, called the Lightning. The Lightning has an MSRP of $2,500. The cost to produce one unit is $800. Their fixed costs are $2,000,000. You are responsible for deciding whether you should sell the Lightning via a retailer named Rugged Motors Inc: Rugged typically discounts its products 18% from the MSRP. They are asking for 55% distributor margin. If Rugged were to be Julia's only distributor, and they expected to sell 25,000 units, what would Julia's revenues be? (show your work)
Can you help with the CVP Drill #6?
Snickle currently sells hot dogs. The selling price per hot dog is $2 and the variable cost per hot dog is $0.70. During a typical month, the company sells 25,000 hot dogs and reports a profit of $9,750. How many hot dogs must the company sell to breakeven?
José Ruiz starts a company that makes handcrafted birdhouses. Competitors sell a similar birdhouse for $275 each. Jose believes he can produce a birdhouse for a total cost of $235 per unit, and he plans a 20% markup on total cost. (a) Compute José's planned selling price. (b) Is José's price lower than competitors' price? Complete this question by entering your answers in the tabs below. Required A Required B Compute José's planned selling price. Selling price per unit
Sunshine's Surfboards usually sells the Beach Sunnies for $100. The variable production cost is $50, the fixed production cost is $10 per unit, and the variable selling cost is $5. A corporate client has requested a special order for 10,000 units of the Beach Sunnies to be imprinted with the company’s logo. This special order would not involve any selling costs, but Sunshine's Surfboards would have to purchase an imprinting machine for $100,000. Sunshine's Surfboards has ample idle capacity and the imprinting machine has no alternate use. What is the rock bottom minimum price below which Northern Optical should not go in its negotiations with the customer?
Coronado Makeup produces face cream. Each bottle of face cream costs $12 to produce and can be sold for $13. The bottles can be sold as is, or processed further into sunscreen at a cost of $14 each. Coronado Makeup could sell the sunscreen bottles for $23 each. What should Coronado Makeup do? Face cream must be further processed because it increases operating income by $1 each. O Face cream must not be further processed because incremental revenue is less than incremental processing costs. O Face cream must be further processed because its operating income is $9 each. Face cream must not be further processed because it decreases operating income by $3 each.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS